Nigerian Pension Funds’ index records 32% gain in 2024

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The Nigerian Exchange (NGX) joined forces with the National Pension Commission (Pencom) and the Pension Fund Operators Association of Nigeria (PenOP) to conduct a webinar aimed at deepening understanding of the NGX Pension Broad Index.

The webinar featured a panel discussion involving key pension industry stakeholders who emphasised the benchmark’s significance for the sector.

Representing the NGX, Acting Chief Executive Officer Jude Chiemeka highlighted the exchange’s commitment to providing benchmarks for the capital market, with over 20 indexes currently available, five of which are sectoral.

He underscored the NGX Pension Broad Index’s impressive year-to-date gains of 32%, expressing the exchange’s dedication to collaborating with stakeholders to boost the market in Nigeria and across Africa.

Chairman of the NGX Index Governance Committee, Abimbola Babalola, explained that the benchmark is a reference point for pension fund administrators (PFAs) to measure their performance and broaden their choice of securities.

”The index includes mid-cap and large-cap stocks, providing a comprehensive investor decision-making benchmark,” he stated.

Kazeem Alimi, Head of NGX Secondary Market, emphasised the index’s role in quantifying performance, stating that it covers both mid-cap and large-cap stocks, positioning it ahead of potential challenges.

Ehis Uzenebor, Chief Investment Officer of Shell CPFA, praised the intentional push for benchmarking, stating that it supports growth, provides an objective basis for industry-wide comparison, and enhances risk management.

Abdulqadir Dahiru, Head of the Investment Supervision Department at PenCom, commended the collaborative effort that led to the NGX Broad Pension Index, promoting diversification with an expanded list of 84 securities.

Dahiru stressed the importance of capacity building within PFAs to improve their understanding and certainty in navigating the market.